GIG warns of further fare rises
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THE Scottish Bus Group put its case to the Traffic Commissioners last week for a second round of fare rises this year and warned that even if its claim was successful, passengers could face a third increase within months.
SBG executive director, Mr Ian Irwin, said the present proposals were aimed at raising an extra Elm in a full year, but wage and insurance increases, as well as dearer fuel, would leave only £500,000.
This would be swallowed up partly by a four per cent drop in passengers and the loss arising from the Commissioners' rejection of part of SBG's April application. "Regrettably this is not the last application that can be expected this year," he said.
The Group is applying to increase its 5p, 6p, 7p and 16p fares by 1 p. Over the range of 17p to 49p it wants to add 2p, and for fares of over 52p it is asking for permission to add five per cent, rounded up to 1 p. Companies in the group are Scottish Omnibus, Central and Western SMT, Alexanders Fife, Midland and Northern, and Highland Omnibuses.
Mr Irwin said that a threshold payment of £1.20 a week to all staff would cost £953,000; a forthcoming increase in National and Graduated Insurance contributions .would add more than £400,000 and increased payments of fuel would bring the total cost in a full year to £1.4m.
. Although is would raise another £500,000 if the application was successful, this would be taken up by an• unexpected drop of four per cent in the number of passengers and the short-fall• from its last application.
Commenting on the disappointing passenger figures, he said he saw ,the trend continuing. Eleven county councils and 49 town councils objected to the proposals on the grounds of hardship.
The application was approved and fares will be increased from August 4.